Custom interior options are also easily available. Rental rates per unit are as follows: Unit(s) Area Rental Rate Appx. Triple Net
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1 Good Morning, Desert Jet Center at Falcon Field began Phase 1 construction June 4 th, 2007, with initial occupancy expected on or about January 1, Phase 1 consists of Units We have pre-leased the 30,000 sq. ft. office at the Southeast corner of the site. (Unit 71 and Office). After construction of Units 1-20, Desert Jet Center will focus on the office construction due to the contractual requirements of the lessee. Desert Jet Center cannot offer hangar condo units for sale until the final plat is recorded, but can and will be pre-leasing the 14 available hangars until the final plat is recorded and condo units can be offered for sale. The first 7 people to pre-lease will be offered: 1. Rental rate discounted 10%, at a fixed rate for up to 3 years. Please note that we are unable to discount the triple net fees of approximately $0.15/ sq. ft./ month) 2. First right of refusal when hangar condo units become available for sale % discount on sales price of condo units. The second 7 people to pre-lease will be offered: 1. Rental rate discounted 5%, at a fixed rate for up to 3 years. 2. Second right of refusal when condo units become available. 3. 5% discount on sales price of condo units. Additionally, Desert Jet Center is negotiating the following amenities/ services: 1. Discounted fuel prices. 2. Discounted on-site aircraft detailing. 3. Longbow Golf Club privileges and discounts. 4. Mariott Courtyard preferred rates (to be located adjacent to our site). The 14 available units will be built to the following specifications: 1. USA Steel Building wide x 55 deep x 60 wide door, 16 clear height. 3. R-19 White faced ceiling insulation. 4. R-19 wall insulation. 5. Sheet rocked interior walls. 6. Your choice of interior paint (one color). 7. White epoxy floor amp individually metered electric service. 9. Pre-plumbing for water and sewer. 10. Center floor drain (twelve) Upgraded fluorescent lite fixtures.
2 12. Schweiss (or equivalent) insulated electric bi-fold door with man-door and remote controls. 13. Pre-wire for security, data, phone, satellite, and web-based surveillance. The following pre-designed options are available at additional rental rates: 1. Interior finished storage unit. 2. Single ready room with bath. 3. Ready room and office with bath and kitchenette. Custom interior options are also easily available. Rental rates per unit are as follows: Unit(s) Area Rental Rate Appx. Triple Net sq. ft. $3355/mo. $.15/sq. ft./mo sq. ft. $3355/mo. $.15/sq. ft./mo sq. ft. $3691/mo. $.15/sq. ft./mo sq. ft. $3691/mo. $.15/sq. ft./mo. To reserve a hangar outlined above, please remit the attached Letter of Intent and a refundable deposit of $20,000 to Desert Jet Center, LLC. The deposit will be applied as follows: $4000 refundable security deposit. The remainder will be applied to monthly rent until exhausted. Desert Jet Center, LLC 4710 E. Falcon Dr. Ste. 111 Mesa, AZ Alan House John Manross
3 June 1, 2007 Name Company Address City, State Zip RE: Sublease for condominium at Desert Jet Center between Desert Jet Center, LLC as Landlord and as Tenant. The following letter represents the terms and conditions upon which Landlord and Tenant are willing to proceed with the documentation of a sublease whereby Tenant would sublease approximately 3355 square feet located in the Phase 1 of Desert Jet Center, as depicted as Unit, on the Site Plan attached to this letter (the Premises ). This letter does not constitute an offer, acceptance or agreement. The Landlord and Tenant shall only be bound upon mutual execution and delivery of a formal Sublease Agreement. The Landlord will consider a sublease on the following terms and conditions. 1. PREMISES: Unit, for use as Aircraft Storage. 2. SQUARE FOOTAGE: Approximately 3355 square feet. 3. TERM: Three (3) years with three (3) three-year options. 4. COMMENCEMENT: Upon completion and acceptance of Tenant Improvements. Estimated at January 15, RENTAL RATE: Year 1 $1.00 per square foot, $3355/ monthly Year 2 Year 3 $1.00 per square foot, $3355/ monthly $1.00 per square foot, $3355/ monthly 6. OPTION RATE: Option 1 Based on the then current market rate to be determined by appraisal process. 7. TENANT IMPROVEMENTS: Landlord shall provide Tenant with a $0 per rentable square foot Tenant Improvement Allowance. 8. OPERATING COSTS: Tenant to pay its pro rata share of operating costs. Tenant's pro rata share is approximately $0.15 per square foot per month. 9. INSURANCE: Tenant shall insure all its property in the Premises against damage by fire, including extended coverage. The Tenant shall
4 also maintain at its expense, throughout the Term, insurance against liability in connection with bodily injury, death, property damage and destruction occurring within the Premises or arising out of the use thereof by the Tenant in the amounts customary for the type of building and use, as determined by Landlord. 10. ASSIGNMENT: No assignment or subletting without Landlord s prior written consent. Tenant shall not be released upon an assignment or sublet without Landlord's prior approval. 11. CURE: Each party shall have a five day monetary and thirty day non-monetary notice and cure period. 12. SECURITY DEPOSIT: $6710 (First and Last Month Rent) 13. SIGNAGE: 14. BROKERS: Landlord and Tenant acknowledge that this proposal is not a sublease and that it is intended as the basis for the preparation of Landlord s customary form Sublease. The Sublease shall be subject to Landlord and Tenant approval. Nothing contained herein shall be binding on either party until such time the terms and conditions are incorporated into a mutually executed sublease document. Landlord makes no warranty or representation to Tenant that acceptance of this proposal will guarantee the execution of a sublease for the Premises. Provided that the above terms and conditions meet with your approval, please execute in the space provided below and return an executed copy to me. TENANT LANDLORD By Its By Its
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